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Impacts Of Fiscal Reform On Dividends: Evidence From Mexico

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  • Jose Asuncion Corona Duenas
  • Cesar Corona Pacheco

Abstract

This paper addresses the Mexican 2014 Tax Reform. Specifically, we examine the distribution of dividends made by thirty-five companies that make up the Price and Quotation Index of the Mexican Stock Exchange. We also examine shareholders who receive the dividends. Results show that companies refrained from declaring dividends in 2014 and payments normalized in 2015. Since 2015, as a result of the 2014 Tax Reform, which required shareholders who receive dividends to pay an extra tax of 10%, dividends have become les desirable. Companies have accumulated profits destined for reinvestment in the company

Suggested Citation

  • Jose Asuncion Corona Duenas & Cesar Corona Pacheco, 2019. "Impacts Of Fiscal Reform On Dividends: Evidence From Mexico," Accounting & Taxation, The Institute for Business and Finance Research, vol. 11(1), pages 71-81.
    • Handle: RePEc:ibf:acttax:v:11:y:2019:i:1:p:71-81
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    References listed on IDEAS

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    1. Mauricio Gutiérrez Urzúa & Miguel Yáñez Alvarado & Benito Umaña Hermosilla, 2012. "Análisis de la política de pago de dividendos en empresas chilenas," Estudios Gerenciales, Universidad Icesi, June.
    2. Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411-411.
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    More about this item

    Keywords

    Dividend Policy; Residual Theory; Tax Reform;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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